USD/CHF Finds Resistance Ahead Of 200 Day Moving Average
January 27, 2013 2:52 am in Chart Alert
USD/CHF had broken over December 7, 2012′s high of 0.9383 which had proved to be a strong resistance during last month. The currency pair’s rise to as high as 0.9389 had indicated some neat-term bullish sentiments and possibilities of testing the psychological 0.9500 level at the first glance. However the fall came much before that and also ahead of the key resistance of 200-day moving average which is near 0.9430.
The previous rise of USD/CHF had also found a very strong resistance at 200-day moving average during November 9 to November 13, 2012. The recent fall took place before testing that level and indicates the sentiments going back to bearish side. The price action also broke the support of 55-day EMA though the weekly closing was at that level.
Resistance trend line turning into support
There was an additional short term resistance trend line was emerging. The recent upward move had broken over that resistance but the downward move seems to be finding support near that trend line. Will this previous resistance trend line will turn into a support trend line or not is to be seen.